Thursday, May 01, 2014

A minimum wage of $25 an hour?

Ah, yodelers, it’s the day of work when you don’t have to work and can think about whether the Swiss should vote for its workers to receive the highest minimum wage in the world (22 SF/$25 an hour) on May 18.

Would you say "ja" to $25 an hour?
$25 an hour? It seems extravagant to the rest of the world. But then again, the rest of the world isn’t paying $25 for a plate of mediocre Chinese food. Or 57 cents a minute to make a national phone call. Or $11 for a 15-minute train ride—in 2nd class, no less.

That’s why the Swiss minimum wage should be put in perspective (and also why The Frau wishes the American government would put the salaries of its citizens working abroad in perspective too).

After all, Switzerland is one of the most expensive countries in the world. But despite this, the country still seems to want to make it livable for everyone. The Frau likes this.

But is a salary of SF 4,000 ($4,533) a month livable in Switzerland? It seems crazy to the rest of the world that the answer might be no. But if you watch this video created by swissinfo.ch, you’ll see that with “low” salaries and high costs of everything from healthcare to food—even $4,533 a month can be a struggle in Switzerland.


That being said, how would you vote on May 18?

7 comments:

Martin said...

Pardon-me, but this is uter nonsense.

CHF 22 would currently be comparable to US$12.75 based on comparable purchasing power.

Professionally, you call this PPP/CPI: http://www.oecd.org/std/prices-ppp/.

But well, this is a usual error by uneducated people.

But to provide a serious comparison, you anyhow would have to compare PPP/CPI-adjusted annual wages, since people tend to work different amount of hours per week and year (holidays!) from country to country.

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